Direxion, a financial services firm with $27.5 billion in assets specialized in creating investment products for investors looking beyond conventional offerings, has filed for a Bitcoin and Ether futures exchange-traded fund (ETF).

The United States Department of Justice (DOJ) is reportedly considering taking legal action against leading cryptocurrency exchange Binance, but is said to be hesitating out of fear of unintended financial fallout for consumers.

Commission-free investment platform Robinhood has revealed an 18% decline in transaction-based revenue from cryptocurrencies in the second quarter of the year, with the downturn coming amid a decrease in the number of customers engaging in trades.

Top stories in the Crypto Roundup today:

• TradFi Giant Direxion Files for Bitcoin and Ether Futures ETF
• DOJ Mulls Over Legal Action Against Binance, Fears Potential Bank Run
• Robinhood’s Crypto Revenue Falls 18% in Q2 Despite Overall Growth

TradFi Giant Direxion Files for Bitcoin and Ether Futures ETF

Direxion, a financial services firm with $27.5 billion in assets specialized in creating investment products for investors looking beyond conventional offerings, has filed for a Bitcoin and Ether futures exchange-traded fund (ETF).

The move comes amidst a flurry of other filings for similar products in the United States, as in the past few days, a wave of applications for Ether futures-based ETFs has hit the U.S. Securities and Exchange Commission (SEC), riding on the coattails of the recent Bitcoin spot ETF frenzy.

The first to make a move was Volatility Shares with its Ether Strategy ETF application, submitted on July 28. The firm has previously made headlines when its 2x Bitcoin Strategy ETF (BITX) became the first leverage crypto ETF available in the US.

The proposed Direxion Bitcoin Ether Strategy ETF would invest in Bitcoin and Ether futures contracts, provided the regulators approve it. The fund could also potentially invest in other ETFs that offer exposure to futures products.

The SEC, which has so far rejected all Ether futures and spot Bitcoin ETF applications, has also been receiving a number of spot Bitcoin ETF applications from a number of financial behemoths, including BlackRock and Invesco.

DOJ Mulls Over Legal Action Against Binance, Fears Potential Bank Run

The United States Department of Justice (DOJ) is reportedly considering taking legal action against leading cryptocurrency exchange Binance, but is said to be hesitating out of fear of unintended financial fallout for consumers.

According to a report citing insiders, the DOJ is worried that an indictment against Binance could trigger a chaotic sell-off similar to the one that rattled FTX in November 2022.

To limit collateral damage to individual investors, authorities are said to be considering levying fines or proposing non-prosecution agreements rather than resorting to criminal charges against Binance.

Binance has already been the focus of a criminal investigation in the U.S., facing allegations of violating American sanctions against Russia. It’s also facing a lawsuit from the SEC, which accuses it of dealing in unregistered securities and operating illegally.

The Commodity Futures Trading Commission (CFTC) further compounded Binance's legal troubles in March by alleging violations of trading and derivatives regulations, naming the exchange's CEO, Changpeng "CZ" Zhao, in the process.

Robinhood’s Crypto Revenue Falls 18% in Q2 Despite Overall Growth

Commission-free investment platform Robinhood has revealed an 18% decline in transaction-based revenue from cryptocurrencies in the second quarter of the year, with the downturn coming amid a decrease in the number of customers engaging in trades.

The California-based firm’s cryptocurrency-related revenue fell from $38 million in the first quarter of the year to $31 million, while recording a 6% slump in the number of customers placing trades and a 15% drop in the notional volume per trader.

Despite these hurdles, Robinhood remains committed to its ventures in the crypto industry. As part of its expansion, it intends to roll out a non-custodial wallet later this year, granting users direct control over their digital assets.

In June, Robinhood acknowledged a 43% drop in crypto trading volume for May compared to April, with May’s trading volume being 68% less than the same period the previous year.

Robinhood’s Q2 results show its total net revenues surged to $486 million, marking a 10% increase from the first quarter of this year. The firm reached GAAP profitability for the first time as a public company in the second quarter, with net income reaching $25 million.

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